venture capital

Dariusz Prokopowicz

All of the above you mentioned are partially true. As a PhD candidate in entrepreneurship, I can tell you my country's experience in this field, which, regardless of political issues and sanctions, Iran has been very successful in this field.

Here are some of the most effective instruments:

1- Government Grants and Subsidies

The Iranian government has established various funds and grants for early-stage startups and innovative projects to support innovation and entrepreneurship, particularly in priority sectors such as technology and pharmaceuticals.

2- Venture Capital and Private Equity

While the venture capital (VC) ecosystem in Iran is still developing, there are some local and regional VC firms that invest in innovative startups.

3- Bank Loans and Financial Institutions

Iranian banks and financial institutions offer loans to entrepreneurs and innovators that have a solid business plan, sometimes with government-backed guarantees or favorable interest rates.

4- Crowdfunding

Crowdfunding platforms have started to emerge in Iran, allowing entrepreneurs especially for consumer-oriented startups to raise capital from a large number of individuals in exchange for equity, rewards, or debt.

5- Angel Investors

Angel investors are individuals who provide capital as well as valuable mentorship and networks to early-stage startups in exchange for equity. In Iran, there is a growing community of angel investors, particularly in cities like Tehran .

6- Tax Incentives and R&D Tax Credits

The Iranian government offers tax incentives and R&D tax credits to encourage innovation and entrepreneurship.

7- Incubators and Accelerators

Incubators and accelerators provide not only funding but also mentorship, networking opportunities, and resources to help startups grow.

The most effective external financing instruments for innovation and entrepreneurship in Iran are a combination of all above, given the country's unique circumstances.

Although they are not a direct funding instrument, Innovation/ Entrepreneurship Hubs can provide an enabling environment and requisite knowledge, tools and technology to assist start-ups to explore and refine their innovations to a level wherein it becomes necessary to source capital funding to establish/ upscale their operations

Dear Researchers, Scientists, Friends,

The presented research questions precisely address the crucial issue of the effectiveness of various external financing instruments in the context of innovation and entrepreneurship development, with a particular focus on technology startups. The text rightly identifies venture capital funds as one of the most effective tools, emphasizing their contribution not only in terms of capital but also mentorship and networking. Expanding on this thought, it would be worthwhile to deepen the comparative analysis of the effectiveness of different funding sources, considering industry specifics and the development stage of enterprises, as well as to examine the synergies between various forms of financing (e.g., combining public grants with private capital). New, important research areas could include the analysis of the impact of regional smart specializations on the effectiveness of financial instruments, the role of crowdfunding platforms and business angels in financing niche innovations, as well as the evaluation of the effectiveness of public support programs in generating sustainable growth of innovative entrepreneurship. I sincerely thank all researchers and scientists for their past work in this important field and, with an open mind, invite further scientific collaboration and continuation of the discussion on optimal models for financing innovation.

Best regards,

Dariusz Prokopowicz